Block deal is anticipated to be used by SoftBank to sell Zomato shares

26 Aug 2023 , 08:16 AM

As the lock-in period following the Blinkit deal ends today, August 25, CNBC-TV18 claimed that Japan’s Softbank is expected to sell shares of food delivery aggregator Zomato soon through block sales.

A 3.35% stake in Zomato is owned by SoftBank. In exchange for surrendering its stake to the company during the Blinkit purchase, it had been given Zomato shares.

As part of the M&A last year, Zomato issued new equity shares with an implied value of 70.76 to each of the Blinkit shareholders who were selling their shares.

According to the agreement, the 12-month lock-in period expires today, and on Monday, August 28, the shares Softbank obtained as part of the Blinkit purchase will be made available for trading.

According to an analysis of the cost of acquiring shares in Zomato owned by pre-IPO and ex-Blinkit owners, these investors are currently sitting on significant gains from their investments, the majority of which are unrealized.

Just three venture capitalists—Softbank, Tiger Global, and Sequioa—own the majority of these shares.

Zomato’s stock price has increased by more than 52% so far this year, and it has increased by more than 45% over the past 12 months.

For feedback and suggestions, write to us at [e-mail]